In 2019, Adam Silver initiated a movement to relax NBA teams' ownership policies for institutional investors, primarily private equity (PE) firms. Prior to this, although nothing prevented affiliates of these private equity funds from making investments, the entities themselves were not permitted to make any investments. With this change, the growth equity potential contributed by these institutions proved crucial for the liquidity, financial diversification, and monetization of these teams—which had an average valuation approaching $2 billion.

In today's featurette, we capture a unique moment in which PE-affiliated teams compete in the NBA Finals while revisiting the key points to consider when attracting these investors, which were studied in detail in the 2020 study published by Ártica, "Attracting Private Equity Investments – What is Most Valued by Managers." Check it out at the link: